In the Preparation of a Statement of Cash Flows All

question 20

Multiple Choice

In the preparation of a statement of cash flows all of the following would be classified as investing activities except:

• A) collection of a loan from a subsidiary.
• B) purchase of a patent from an inventor.
• C) sale of plant assets.
• D) dividends received on stock held as an investment.

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Definitions:

Peck

A unit of volume for dry goods, historically used in agriculture and equal to about 8.809 or 9 liters in the US and UK respectively.

Bushel

A unit of volume that is used for measuring agricultural commodities, varying in actual volume by the product being measured.

Consumption

The use of goods and services by households or individuals for personal satisfaction or to fulfill needs.

Mercedes

A German global automobile marque known for luxury vehicles, buses, coaches, and trucks.